Cannabis Real Estate Financing Options for 2025

The cannabis lending landscape is undergoing major changes for 2025. From our understanding, lenders like Canna Business Resources, eQcho Capital, Invico Capital and more are exiting cannabis lending altogether. This exodus further tightens an already constrained financing market, making it even more difficult for cannabis operators to launch or scale their businesses.

With that in mind, let’s take a look at who is still offering cannabis real estate financing and what those current programs look like. Keep in mind this is a snapshot in time and things can change quickly, but here is where we are today.

What Types of Lenders Offer Financing for Cannabis Real Estate?

Depending on exactly what structure you are looking for there are upwards of six different types of lenders financing cannabis real estate purchases, refi’s, construction and renovation projects.

Banks & Credit Unions: Yes, there are a smattering of banks and credit unions that finance the cannabis industry but they are very risk averse. Most all deal with real estate and they do offer the best rates and terms, however, they will require the strongest borrower profiles and best types and location of collateral. These lenders are the only type whose rates fluctuate based off the Prime Treasury.

Private Money Lenders: These lenders come in a variety of forms but the common thread is they do not borrow money from the Federal Reserve or depositors. Rates and terms vary wildly from short term interest only to longer fifteen year terms including principal and interest. They are more open to moderate levels of risk as well.

Hard Money Lenders: The highest risk lender types that are laser focused on the asset and hedge risk with high rate, short term interest only loans on lower loan to values to ensure they can be made whole if the worst happens. 

Management Companies: These aren’t really lenders so much as their goal in life is to be a landlord. They might purchase or renovate a property and offer a lease to a client or offer a sale leaseback with option to repurchase. Sometimes this is forever, and sometimes they offer the chance for the client to repurchase the property at a later date.

Development Companies: Development companies don’t offer permanent financing, however, they generally have their own investor pool that will fund the construction or heavy renovation project while the development company is the company of record completing the project. The expectation is there is an offtake agreement with the client to purchase the property once it is complete and for that step you will need your own money or financing to complete it.

What are the General Rates and Terms Available for Cannabis Real Estate Loans?

Rates and terms available for cannabis real estate loans vary greatly depending on borrower strength, the level of risk and collateral type and location. 

Banks and credit unions currently offer rates starting in the high seven percent to low 8% range but go as high as 13%. Loan to value can reach 80% for strong borrowers but that is always based on the commercial use and not cannabis use value. Terms can range from 5 years interest only to 15, 20 and even 25 years in some cases. 

Private money lender rates generally start around 10% and can reach 14% depending on risk and borrower strength. Due to the higher risk, loan to value usually caps at 65% on the commercial use value. Terms can range from 3 years interest only up to 15 years principal and interest with varying amortizations.

Hard money lenders tolerate the most risk but in exchange for that their rates will start at 15% and we’ve seen them as high as 20%. Loan to values will be much lower, usually capping out at 50% on the lowest use value and terms are usually much shorter, around 1 to 3 years interest only.

What are Key Borrower Metrics Cannabis Real Estate Lenders Evaluate?

The biggest disconnect we see between a cannabis borrower and lender is the level of risk they offer versus the type of financing they are requesting. 

The real trick to getting approved is to make the case you are a safer place to park your money than the competitors walking through their door and to be realistic about the level of risk you are exposing the lender to. 

Below are the three first pillars lenders will use to evaluate your cannabis real estate financing request.

Pillar One – Corporate Financial Strength 

Lenders will want to answer the first question of, “How is the company going to pay for this debt today“. 

They will look at your revenue, net income and debt service coverage ratios to determine how easily you can pay for the loan you are requesting. Projections are nice, but they are just that, a plan for the future that hopefully works out. 

Banks and credit unions will require strong corporate financials that give them high confidence in debt service. They generally don’t work with pre or early revenue startups or companies that are cash strapped or losing money. 

Private and hard money lenders may work with pre or early revenue companies depending on the strength of your other pillars.

Note that if you are pre or early revenue but own other cash flowing businesses with strong financials, that company can step in as a cross corporation guarantor to firm up this pillar.

Pillar Two – Personal Guarantor Strength 

The second question you’ll need to answer is, “if the company cannot pay for this debt, who will pay for it?”

We’ve been doing this long enough to assure you virtually every lender type servicing the cannabis industry will require personal guarantors. The only exception, if you can call it that, are high risk lenders that require limited guarantors. Essentially someone to serve papers to in the event of a default.

All other lenders will require personal guarantors that have enough income, cash reserves and quickly liquidatable assets to service the debt in the event the company cannot.

Net worth is nice, but can be easily inflated. Liquidity is the key here and one reason why we recommend not spending all your money before you approach a cannabis lender for financing.

Pillar Three – Collateral

The final question to answer is, “what type of collateral are you offering us in the event the company and the guarantors fail to service this debt?”

Having the collateral is the first step, but what type of collateral is it, where is it located and what is the value of the real estate?

All of these things matter. As a general rule of thumb, brick and mortar rules but metal and concrete is OK. Plastic and metal hoop houses are equipment, not real estate. Farms with little to no structures can be incredibly difficult to finance.

Urban or urban adjacent locations are the best. The more rural your property the harder it gets since the secondary market with which to resell it is small. Lenders are terrified of having a for sale sign on the property for a decade if the worst happens.

Value is also a huge factor. Another disconnect we see is clients that use cannabis use values for their properties. From a lender’s viewpoint, that is the highest and narrowest value. Lenders typically use the commercial use value or in the event of high risk asset only lenders, they use the empty box value. Lender’s that do consider cannabis use value will come way down on loan to value to compensate.

At the end of the day, you need at least two of these pillars to open up most doors to cannabis financing. If you have all three you can open most doors. If you have two you can open up many doors. If you have only one, it better be incredibly convincing. Like you can stroke a check for this loan and still be financially solvent. Or your building is worth one-million but you are asking for a couple hundred thousand in financing.

Requests outside of this are generally investment requests, no debt lending requests. Remember, debt lenders aren’t looking to operate your cannabis business nor recover and sell collateral due to a default. They simply want to be repaid on-time and in-full.

How Can I Find Out if My Company Qualifies for Cannabis Real Estate Financing?

Curious where your cannabis business stands? We can help! At Loanviser, we work directly with cannabis real estate lenders to help you identify potential financing programs, compare rates and terms, and prepare strong loan applications.

Contact us today to schedule your no-obligation discovery call. 

About the Author: Daryl Eames is the founder of Loanviser and the NH Cannabis Association. He has advocated for cannabis legalization in the state of New Hampshire and has deep experience in cannabis financing and cannabis merchant processing, servicing the cannabis industry since 2019.